Public Good

People aspire to join organizations
that have high ethical values. Companies are able to attract the best talent
and an ethical company that is dedicated to taking care of its employees will
be rewarded with employees being equally dedicated in taking care of the
organization. The ethical climate matter to the employees. Ethical
organizations create an environment that is trustworthy, making employees
willing to rely, take decis ions and act on the decisions and actions of the
co-employees. In such a work environment, employees can expect to be treated
with respect and consideration for their colleagues and superiors. It
cultivates strong teamwork and productivity and support employee growth.
Retaining talented people is as big a challenge as getting them in the first
place. Work is a means to an end for them, not an end in itself. The
relationship they have with their employer must be a mutual, win- win one, in
which their loyalty should not be taken for granted. Talented people will
invest their energy and talent only in organizations with values and beliefs
that match their own. In order to achieve this match, managers need to build
cultures, compensation and benefits packages, and career paths that reflect and
foster certain shared values and beliefs.

2. Investor Loyalty

Investors are concerned about
ethics, social responsibility and reputation of the company in which they
invest. Investors are becoming more and more aware that an ethical climate
provides a foundation for e fficienc y, productivity and profits. Relations hip
with any stakeholder, including investors, based on dependability, trust and
commitment results in sustained loyalty.

3. Customer satisfaction

Customer satisfaction is a vita l
factor in successful bus iness strategy. Repeat purchases/orders and enduring
relationship of mutual respect is essential for the success of the company. The
name of a company should evoke trust and respect among customers for enduring
success. This is achieved by a company that adopts ethical practices. When a
company because of its belief in high ethics is perceived as such, any crisis
or mishaps along the way is tolerated by the customers as a minor aberration.
Such companies are also guided by the ir ethics to sur vive a cr itica l s
ituatio n. Pre ferred va lues are identified ens ur ing that organizational
behaviors are aligned with those values. An organization with a strong ethical
enviro nment places its customers' interests as foremost. Ethical conduct
towards customers builds a strong competitive position. It promotes a strong
public image.

Regulators eye companies functioning
ethically as responsible citizens. The regulator need not always monitor the
functioning of the ethically sound company. The company earns profits and
reputational gains if it acts within the confines of business ethics.

To summarize, companies that are
responsive to employees' needs have lower turnover in staff.

— Shareholders invest their money
into a company and expect a certain level of return from that money in the form
of dividends and/or capital growth.

— Customers pay for goods, give
their loyalty and enhance a company's reputation in return for goods or
services that meet their needs.

— Employees provide their time,
skills and energy in return for salary, bonus, career progression, learning.

CONCLUSION

In making ethics work in an
organization it is important that there is synergy between vision statement,
mission statement, core values, general business principles and code of ethics.
A commitment by corporate management to follow an ethical code of conduct
confers a variety of benefits. An effective ethics program requires continua l
reinforcement of strong values. Organizations are challenged with how to make
its employees live and imbibe the organization codes and values. To ensure the
right ethical climate, a right combination of spirit and structure is required.

Corporate Ethics is much needed to
stress the importance of sustainability, social development, stakeholders,
consumer satisfaction and service orientation in place of profit orientation.
Ethics point out what is good and what is bad, so also what is right or wrong.
It brings to the notice of the business community the importance of honesty,
sincerity and fairness which makes them alert and socially conscious. This also
expedites a better relation between business and the society. It reconciles
conflicting interest of various sections of the society such as workers,
shareholders, consumers, distributors, suppliers, competitors and government.